May 30, 2012 / 5:37 PM / 5 years ago

Med crude-CPC Blend, Saharan Blend weaken

LONDON, May 30 (Reuters) - Spot differentials for
Mediterranean sweet crude grades lost further ground on
Wednesday as poor naphtha margins and a continuing onslaught of
West African grades weighed on the market.	
    Russian Urals prices were steady, traders said, after a deal
done in the Platts window stayed range bound in North West
Europe while the Mediterranean was quiet.	
    In the window, Gunvor bought a 100,000 tonne Urals cargo
from Shell at dated Brent minus $1.95 cif Rotterdam loading June
9-13. 	
    BP bid up to dated Brent minus $2.00 for a June 19-23 Urals
cargo from Primorsk. Glencore offered a Urals cargo in the North
at dated Brent minus $1.90 loading June 5-9 and Statoil offered
another at dated Brent minus $1.80 loading June 4-8, market
sources said.	
    Vitol returned for a third day with an offer for an 80,000
tonne Urals cargo loading June 8-12 at dated Brent minus $1.15
cif Mediterranean. 	
    In sweet crude news, Trafigura returned to the window
offering a Aframax cargo of Kazakh CPC Blend down to dated Brent
minus $2.75 cif Mediterranean loading June 11-15 but still
failed to elicit buying interest.	
    Traders continued to blame naphtha margins as well as an
oversupply of sweets in the region for CPC Blend's record falls
this week. The grade is even weaker than non-competing sour
grades like Iraqi Kirkuk.	
    "On top of weak naphtha, the problem is that not enough West
African is going to the U.S. with domestic production up," said
one trader, "Part of it will go to Europe, adding more
pressure."  	
    Algeria's light sweet Saharan Blend has also fallen further,
moving towards dated Brent minus $2.00, according to several
traders. But details on a deal done near dated Brent minus $2.00
remained sketchy.	
    Prices on Azeri Light is still commanding a premium to dated
Brent with plus $2.70/2.80, several traders said, in contrast to
its floundering alternatives. Furthermore, some expect July to
be even stronger.   	
    "July promises to be a good month in terms of volumes," said
a trader of Azeri Light.	
    In tender news, Vitol won four Urals cargoes and Gunvor won
three Urals cargoes loading from Primorsk in Russian Rosneft's
latest sell tender. The price was heard to be around dated Brent
minus $1.70 cif Rotterdam. 	
    Indian oil refiner BPCL bought 1 million barrels of Libyan
Sarir crude from Japanese trader Marubeni in a tender, trade
sources said.  	
   The refiner may have bought the cargo for loading on July
21-31 at a discount of 20 cents a barrel to dated Brent, one of
the sources said.  	
	
 (Reporting by Julia Payne; Additional reporting by Dmitry
Zhdannikov and Gleb Gorodyankin; Editing by Anthony Barker)

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